This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
Dependent Care FSA
A pre-tax account for childcare and elder care expenses — separate from a medical FSA.
Full Definition
A Dependent Care FSA (DCFSA) is a pre-tax benefit account that lets you set aside money for eligible dependent care expenses — such as daycare, preschool, after-school programs, and elder care for a dependent adult. The 2025 contribution limit is $5,000 per household ($2,500 if married filing separately). Unlike a medical FSA, DCFSA funds can only be used for care that allows you and your spouse to work, look for work, or attend school full-time. DCFSA funds are subject to the use-it-or-lose-it rule.
Real-World Example
You and your spouse both work full-time. You contribute $5,000 to a Dependent Care FSA to cover your toddler's daycare costs. The $5,000 is pre-tax, saving you roughly $1,500 in federal income tax depending on your bracket.
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